A relative who does long-distance real estate investing told me that I have to sign the final loan document and the transfer of ownership document in person.

And even then, the life cycle is generally pretty long from first contact to closing.  

Quote from @Frank Pyle: Obstacle is getting a 1007 with realistic long term rents. 

Long story short, it has been over a year and the project remained incomplete and he walked away with the money.

What really matters is how long you think you will have this loan. 

I have the "Bidding to Buy" book next on my reading list, following by David Greene's "Long Distance Real Estate Investing" book. 

Are you needing a long term or bridge loan?

If it's worth that much, taking a HELOC on it should not be an issue at all long-term or short-term as long as the bank will do it.

The decisions and actions you make today can lead to incredible long-term benefits, so it's great that you're starting now.A good starting point is connecting with a lender that aligns with your goals.

If somebody wants to get an FHA loan, then eventually turn that into a rental (short term or long term TBD), how would that typically work?